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RFD- 4186 Business Items   Item #   11. b.    
Regular Council Meeting Agenda
Meeting Date: 04/26/2021  
Title:    Arena Complex Project Decision - Screpnek
Presenter: David Wolanski
Department: City Manager  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal:

Request for Decision Summary
To present to Council a report on the Arena Complex Project with accompanying recommendations for moving forward.
Proposed Motion
That the Arena Project Report be received for information.
That Council direct administration to move forward with preliminary design of a Civic Centre as presented in the report.
In July 2020 administration presented to Council arena facility types/concepts requesting Council review and consider. Council subsequently passed a motion for the City to continue its investigation of two (2) options:
  1. Pursue investigation of a spectator ice facility along with second community ice surface, and 
  2. Pursue investigation of a standalone twin ice facility. 
In October 2020 the City contracted Y Station Communications and Research to develop and conduct public engagement with the community on the two options. The goals of this public engagement were to:
  • Raise awareness about the project (current state and history),
  • Educate on options, financial considerations and the City's fiscal position and future choices, and
  • Collect feedback on options.
The public engagement report was presented to Council on October 26, 2020.  Several themes emerged from this engagement as well as in previous discussions with Council and stakeholders.  These themes include:
  • Concerns with cost implications
  • Need to address ice shortages
  • Benefit of elite level hockey to the City
  • Something beyond just a twin pad was desirable for the ability to host larger scale events
  • Concerns related to non-ice/recreation needs in the community
City administration has been undertaking detailed analysis of the options available including, but not limited to:
  • Researching and engaging with industry contacts who have similar facilities.
  • Engaging with construction and design professionals to gain further insight into “current state” and possible options.
  • Analyzing previous work considering both old and new assumptions.
  • Identifying more specific operating pro forma’s in relation to other similar facilities, our own experience, and various assumptions.
  • Engaging more directly with partners and stakeholders.
  • More fulsome long term capital planning.
Based on the analysis completed, and in line with the public engagement themes, administration believes there is an opportunity to construct a spectator area with a secondary ice sheet while also adding additional community amenities.  The analysis also shows that through various capital and operating assumptions, the facility could be achieved with less capital and operating costs than previously identified.  

The new concept being presented is a true Civic Centre with a variety of uses and amenities.  A high level overview of the proposed amenities, detailed more fully in the report and presentation, includes:
  • Two NHL sized rinks with one having a seating capacity of a minimum of 1700 seats.
  • Concourse area with community walking track.
  • Approximately 25,000 square feet of community space including a Black Box Theatre/flex space, multi-purpose rooms, library space, and art gallery.
An alternative to the recommended Civic Centre option is a basic twin pad arena.  Much of the information related to design and facility opportunities and limitations have not changed from previous reports related to the twin pad option.  Including additional amenities as proposed in the Civic Centre, although possible, is not recommended due to viability concerns in locations and the lack of ability to maximize synergies with co-location of amenities.  Administration did, however, review original cost estimates for a twin pad and have updated them as follows: 

July 2020 and Public Engagement:
Capital $30 million (construction)
  $1.8 million (land)
  $31.8 million total
Operating Subsidy $450-$500 K
Financing MSI = $23,550,000
  Debt = $8,250,000
Taxation Equivalent = 2.44%  

Updated Information:
Capital $25.25 - $26.6 - $28.5 million total
(low pre-eng/mid range/high - tradition construction)
Operating Subsidy $300 K
Financing ($26 million mid) MSI = $18,550,000
  Debt = $7,450,000
Taxation Equivalent = 1.89% (.73% operating and 1.16% capital debt servicing)
Feedback received through Y Stations Communications & Research 'Public Participation Exercise' which has helped support recommendations included in this report.

Additionally, prior to the April 26, 2021 Council meeting and presentation of the report, administration has been engaging with multiple stakeholders on Civic Centre concept.  These include:
  • Town of Stony Plain 
  • Parkland County
  • TLC
  • Spruce Grove Saints
  • Minor hockey, ringette, and other ice users
  • Spruce Grove Public Library
  • Allied Arts Council
  • Horizon Players
  • Stagelighters
  • Other private partners both in regards to recreation and arts/culture

Following a decision of Council, administration will proceed immediately with formal stakeholder engagement and agreements where necessary.
As identified in the report, if approved the City would proceed with engagement of stakeholders and implement the project delivery plan, including assembling the primary project team.  Furthermore, the City would proceed as soon as possible with a Request for Proposals for a design architect and construction manager.  
The proposed Civic Centre would address a number of identified needs in our community.  These include ice shortages, modern facility for elite hockey, library space, and other arts and culture investments.  Additionally, the ability to host larger scale community and sub-regional events would provide increased community exposure and economic benefits to the community at large.  The facility has the ability to be a strong beacon in the region for recreation and culture sustainability and complement the mid-sized city that Spruce Grove has already become.  

Fiscal Impact
Financial Implications:
The full financial estimates for the proposed Civic Centre are detailed in the accompanying report and presentation.  Should Council proceed as outlined in the report the associated actions (preliminary design and land assembly) are provided for within existing 2021 approved budgets.
Arena Complex Report

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